The crash, which involved a skydive plane, happened just before 1.30pm at the end of the runway.
All nine people onboard died in the accident, police said.
A police spokesperson said the passengers and pilot were a mix of New Zealanders and tourists.
Police are now notifying next of kin.
The plane reportedly burst into flames after takeoff.
Ambulance staff did not know the age or gender of those deceased.
There is only one sky diving company based at Fox Glacier, Skydive New Zealand.
When contacted, a female employee of the company said "no comment".
A message on the company's answerphone this afternoon said, "unfortunately, we will not be skydiving for the rest of the day."
According to the company's website, Skydive New Zealand was relocated from Hokitika to the glaciers in 1997. The business is owned and operated by locals who have been involved in the skydiving and aviation industry for more than 25 years.
The aircraft, a Fletcher Fixed Wing plane, is a type operated by several scenic flight operators in the area, including ski planes, and is considered ideal for the mountain environment.
Police are at the scene.